Aircraft Bill of Sale: What to Include

Buying or selling an aircraft is unlike almost any other private sale. A used car changes hands at the DMV with a VIN and a title; an aircraft changes hands at a federal registry in Oklahoma City, with a serial number, an N-number, a stack of logbooks, and a title history that can stretch back decades. The document that ties all of it together is the aircraft bill of sale.

Get it right and the FAA registers the aircraft to the new owner, the lender releases funds, and the buyer flies home with clean title. Get it wrong, and a missing serial number or an undiscovered lien can stall the transfer for weeks or follow the buyer for years. This guide explains what an aircraft bill of sale is, exactly what to include, how the FAA process works, and the mistakes that turn a six-figure deal into a dispute.

What is an aircraft bill of sale?

An aircraft bill of sale is a written document that records the transfer of ownership of an aircraft from a seller to a buyer. It states who sold the aircraft, who bought it, which aircraft was sold, what was paid, and the date ownership transferred.

The difference with an aircraft is jurisdiction. A U.S. civil aircraft is registered with the Federal Aviation Administration, not a state agency. The FAA maintains the national registry at the Mike Monroney Aeronautical Center in Oklahoma City, and it will not register an aircraft to a new owner without evidence that ownership actually changed. The bill of sale is that evidence.

It serves several purposes at once:

• Proof of ownership transfer. It is what the FAA needs to issue a new Certificate of Aircraft Registration.
• Price and tax record. It documents the purchase price, which states use to assess sales or use tax.
• Liability protection. Once signed, the seller is no longer the registered owner responsible for the aircraft.

A bill of sale is different from the Certificate of Aircraft Registration (which shows current registered ownership) and from the airworthiness certificate (which stays with the aircraft and certifies it is legal to fly). The bill of sale proves the moment of transfer; the other documents flow from it.

FAA Form 8050-2 vs. a private bill of sale

There are two ways to document an aircraft sale, and serious deals often use both.

AC Form 8050-2 is the FAA's own one-page Aircraft Bill of Sale. It is short, standardized, and the cleanest thing to file with the registry. If you want the fewest possible objections from the FAA, fill out 8050-2 and submit it.

A private (standalone) bill of sale is a fuller document you draft yourself. It can carry everything 8050-2 leaves out: engine and propeller times, logbook status, an as-is clause, disclosures, and payment terms. The FAA accepts a conveyance "in a form acceptable to the FAA" as long as it clearly identifies the aircraft and shows the transfer, so a well-drafted private bill of sale can be filed directly.

In practice, many buyers and sellers sign a detailed purchase agreement or private bill of sale that governs the actual deal, then also sign AC Form 8050-2 specifically to record the transfer with the registry. There is nothing wrong with belt-and-suspenders here.

When do you need an aircraft bill of sale

You should create one for essentially every aircraft transfer, but it is non-negotiable when:

• Selling between private parties. There is no dealer paperwork to fall back on.
• The aircraft must be re-registered. The FAA requires evidence of ownership for every change of registered owner.
• A lien or loan is involved. Lenders will not fund without a recordable bill of sale and clear title.
• The sale price affects taxes. The document is your record of what was actually paid.
• You are gifting or transferring within a family or LLC. Note "gift" or a nominal amount, but still document the transfer.

Even for a modest single-engine aircraft, skipping the bill of sale is a mistake. Without it, the FAA registration stays tied to the seller, and a seller who remains the registered owner can be drawn into questions about an aircraft they no longer control.

What to include in an aircraft bill of sale

A complete aircraft bill of sale has a predictable structure. Leave a section out and you risk a rejected registration or an unenforceable document.

1. Buyer and seller information

Use full legal names and current addresses for both parties. If an LLC or corporation owns the aircraft (extremely common, since many owners hold aircraft in a single-member LLC), use the legal entity name and the name and title of the person authorized to sign.

2. Aircraft description

This is the heart of the document. Identify the aircraft precisely:

• Make and model (e.g., Cessna 172S, Cirrus SR22)
• Year of manufacture
• Manufacturer's serial number (MSN): the permanent serial that uniquely identifies the airframe
• Registration mark (N-number): the "tail number," e.g., N12345

The serial number is the single most important identifier. N-numbers can be changed or reassigned; the serial number cannot. Recording both ties the bill of sale to one specific airframe and is required for the FAA transfer.

3. Engine and propeller details

Aircraft are valued largely on engine and propeller condition, so describe them on their own lines:

• Engine make, model, and serial number
• Propeller make, model, and serial number
• Total time on the airframe, engine time since major overhaul (SMOH), and propeller time

Time figures belong in the deal documents because a buyer is paying partly for remaining hours before the next overhaul. Tie the numbers to the logbooks.

4. Logbooks and records

The maintenance logbooks are part of the sale and arguably part of the aircraft's value. Aircraft with complete, continuous logbooks are worth materially more than identical aircraft with gaps. State that the airframe, engine, and propeller logbooks transfer to the buyer at closing, and note any known gaps rather than glossing over them.

5. Purchase price and payment terms

State the agreed price in numbers and words. Note how payment was made (wire transfer is standard for aircraft) and whether the full amount was paid at closing or through escrow. For a gift or intra-family transfer, write "gift" or a nominal sum.

6. As-is clause and warranties

Most private aircraft sales are "as-is, where-is", meaning the buyer accepts the aircraft in its current condition with no warranties from the seller. Include this clause explicitly. It protects a private seller from claims about defects discovered after closing. It does not, however, protect a seller who hides a known problem.

7. Disclosures

Honesty here protects the seller. Disclose known material issues: prior damage history, a gear-up landing, lightning strikes, corrosion, open airworthiness directives (ADs), or logbook gaps. Disclosing a problem and selling as-is is far safer than staying silent and facing a fraud claim later.

8. Date, signatures, and notarization

Both parties sign and date. The FAA does not require notarization for a domestic registration, but notarization helps if the sale is ever disputed and is commonly required for exports or lender-financed deals. Make originals for the buyer, the seller, and the FAA filing.

How to write an aircraft bill of sale: step-by-step

Step 1: Gather the details. Pull the serial number, N-number, engine and propeller serials, and current times from the logbooks and the data plate, not from old listings.

Step 2: Fill in the parties. Enter full legal names and addresses, or the LLC name and signer for entity-owned aircraft.

Step 3: Describe the aircraft precisely. Add make, model, year, serial number, and N-number. Double-check the serial character by character; one wrong digit stalls the registration.

Step 4: Record engine, propeller, and logbook status. List serials and times, and state that logbooks transfer at closing.

Step 5: State the price and payment method. Write it in numbers and words and note that payment cleared (or ran through escrow).

Step 6: Add the as-is clause and disclosures. Make the condition of the sale explicit and disclose known defects, damage history, and open ADs.

Step 7: Sign, date, and arrange the FAA filing. Sign AC Form 8050-2 (and your private bill of sale), then route everything to the registry, usually through an escrow agent.

Title search, liens, and escrow

Aircraft liens, security interests, and tax liens are recorded against the aircraft at the FAA Registry, and they travel with the airframe rather than the seller. This is where an aircraft deal differs most from a car or boat sale. A buyer who pays without checking can inherit a lender's lien on an aircraft they thought was clean. So before closing:

• Order a title search. A title company in Oklahoma City pulls the FAA records and reports recorded liens, prior owners, and any documentary defects in the chain of title.
• Confirm liens are released. If a lender financed the aircraft, the payoff and a recordable lien release must be in hand before or at closing.
• Close through escrow. An aircraft escrow service holds the buyer's funds and the signed bill of sale, then releases money to the seller only once clear title and recordable documents are confirmed. For escrow's role in protecting both sides of a transfer, see our Escrow Agreement Template.

For larger turbine and transport-category aircraft, an additional layer applies: the Cape Town Convention and its International Registry, where international interests are registered separately from the FAA filing. Most piston singles and light twins fall outside that regime, but anyone buying a jet or large turboprop should expect both registries to be in play.

FAA registration after the sale

Once the bill of sale is signed and funds release, the buyer completes the federal side:

1. File AC Form 8050-2 (the bill of sale) with the FAA Aircraft Registry.
2. Submit AC Form 8050-1, the Aircraft Registration Application, in the new owner's name.
3. Pay the registration fee.

The FAA issues a temporary authority that lets the buyer operate the aircraft while the paperwork processes, then mails the permanent Certificate of Aircraft Registration. The N-number stays with the aircraft unless the new owner applies to reserve and assign a different mark. If the aircraft is being exported, the seller's side involves de-registration from the FAA before the foreign authority will register it.

State and federal tax considerations

Federal registration does not erase state tax. Most states assess sales or use tax on an aircraft purchase, calculated from the price on the bill of sale, and some aggressively pursue use tax when an aircraft is based in or flown into the state after purchase. A few structures, such as a "fly-away" exemption (the aircraft is removed from the seller's state within a set window) or basing the aircraft in a no-tax state, are common but state-specific. Because the dollar amounts are large, confirm the tax treatment with a professional before closing rather than after.

Common mistakes that void or weaken an aircraft bill of sale

Leaving off the serial number. The N-number alone is not enough; it can be changed. Without the manufacturer's serial number, the document does not unambiguously identify the airframe, and the FAA may reject the filing.

Skipping the title search. Recorded liens follow the aircraft. A buyer who skips the search can pay full price and still owe a lender.

Closing without escrow on a financed or high-value deal. Wiring six figures directly to a private seller before clear title is confirmed is how buyers lose money.

Treating logbooks as an afterthought. Missing or discontinuous logbooks can knock tens of thousands off value. Confirm the records transfer and document any gaps.

Hiding damage history or open ADs. An as-is clause does not cover fraud. Concealing a gear-up landing or an unaddressed airworthiness directive can void the sale and expose the seller to damages.

Forgetting the FAA filing window. The bill of sale alone does not register the aircraft. The buyer must file the registration application promptly or risk operating an improperly registered aircraft.

Aircraft bill of sale vs. other transfer documents

A bill of sale is one tool in a family of transfer documents, and it helps to know how it relates to the others.

The closest cousins are the boat and vehicle bills of sale. The structure is nearly identical, just with a serial number and N-number instead of a HIN or VIN, and an FAA filing instead of a DMV visit. If you have sold a boat privately, the rhythm will feel familiar; for a closely related example, see our Boat Bill of Sale Template and the simpler ATV Bill of Sale Template.

A bill of sale is also distinct from a lease or rental agreement, which transfers temporary use rather than ownership, and from a service or management agreement, which covers ongoing care of the aircraft. If you are unsure whether you even need a bill of sale for a given transfer, read Do You Need a Bill of Sale When Selling Your Vehicle?.

A quick checklist before you sign

Run through this list before either party signs:

• Full legal names and addresses (or LLC name and signer) for buyer and seller
• Make, model, and year of the aircraft
• Manufacturer's serial number, copied off the data plate
• N-number (registration mark)
• Engine and propeller make, model, serial numbers, and times
• Confirmation that logbooks transfer, with any gaps noted
• Purchase price in numbers and words
• As-is clause and disclosures, including damage history and open ADs
• Title search complete and any liens released
• AC Form 8050-2 and AC Form 8050-1 ready for the FAA filing

If every box is checked, you have a document the FAA Registry will accept and that will hold up if the sale is ever questioned.

Generate your aircraft bill of sale with Contractable

An aircraft bill of sale is not complicated, but getting every identifier right, the serial number, the N-number, the engine and propeller details, the as-is language, and the FAA filing, is where buyers and sellers slip up. Contractable generates a complete, properly structured aircraft bill of sale in seconds, with the right fields for the airframe, engine, propeller, and logbooks and clauses tailored to your sale. No lawyers or legal knowledge required.

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